9780873894685

Robert M. Monczka is the Director of The Global Procurement and Supply Chain Benchmarking Institute, and a professor of strategic sourcing management and the National Association of Purchasing Management at Michigan State University. Monczka received his doctorate from Michigan State University in 1970 Robert B. Handfield is the Bank of America distinguished university professor of supply chain management at North Carolina State University. Handfield earned his Ph.D. in 1990 from the University of North Carolina at Chapel Hill Thomas V. Scannell is an assistant professor of management at Western Michigan University. Scannell received his doctorate from Michigan State University in 1999 Gary L. Ragatz is an associate professor of Supply Chain Management and director of the International Business Center at Michigan State University. Ragatz received his Ph.D. from Indiana University in 1985 David J. Frayer is the associate director of The Global Procurement and Supply Chain Benchmarking Initiative at Michigan State University. Frayer received his doctorate from Michigan State University in 1995

List of Figures and Tables

ix

Preface

xi

The New Product Development Process in the Context of Supply Chain Management Strategy

1

(10)

Introduction and Objectives

1

(3)

The New Product Development Process

4

(2)

Increasing Role and Impact of Suppliers

6

(3)

Conclusion

9

(2)

Executive Review

11

(16)

Introduction and Objectives

11

(1)

Reengineering the New Product Development Process

11

(5)

Supplier Integration: Strategic Planning Process

16

(5)

Determining Current and Future Needs

16

(2)

Developing a Well-Aligned World-Class Supply Base

18

(2)

Developing a Bookshelf of Viable Technologies and Suppliers

20

(1)

Supplier Integration: Execution Process

21

(4)

Give Supplier(s) an Active Role

22

(1)

Establish Clear Metrics and Targets

23

(1)

Share Information Openly and Extensively

23

(2)

Involve Suppliers in Decision Making and Problem Solving During Design

25

(1)

Monitor Results and Learn from Experience

25

(1)

Conclusion

25

(2)

Reengineering the New Product Development Process: Focus on Suppliers Integration

27

(70)

Introduction

27

(2)

Reengineering the NPD Process to Support Supplier Integration: An Overview

29

(4)

Supplier and Procurement Function Roles in the NPD Process: Key Strategic Issues

33

(16)

NPD Strategy

34

(3)

Organizational Strategy

37

(5)

Supply Chain Management Strategy

42

(7)

Supplier and Procurement Function Roles in the NPD Process: Key Execution Issues

49

(25)

NPD Team Structure

49

(6)

NPD Team Empowerment

55

(2)

Supplier Selection

57

(3)

NPD Roles and Responsibilities

60

(4)

Team Dynamics

64

(3)

Electronic Linkage

67

(1)

Leveraging

68

(4)

Risk Management

72

(2)

Summary

74

(3)

Reengineered Product Development Planning Chart

77

(20)

Establishing Current and Future Needs

97

(14)

Introduction

97

(2)

Determining Current and Future Needs: An Overview

99

(2)

Establish Internal Core Competencies and Capabilities

101

(3)

Establish Current and Future New Product Requirements

104

(1)

Identify Current and Future Needs for External Technologies and Capabilities

105

(4)

Summary

109

(2)

Establishing a Strategically Aligned World-Class Supply Base

111

(16)

Introduction

111

(1)

Select Appropriate Suppliers and Build Relationship

112

(10)

Cross-Functional Commodity Management Structures

113

(3)

Supplier Assessment Criteria

116

(5)

Building Relationships

121

(1)

Summary

122

(1)

Align Objectives and Technology Road Maps

122

(4)

Sharing Technology Road Map Information

122

(4)

Motivating Supplier Alignment

126

(1)

Summary

126

(1)

Establishing a Bookshelf of Viable Technologies and Suppliers

127

(10)

Introduction

127

(2)

Monitor Supply Market for Emerging Technologies

129

(1)

Continuously Evaluate Emerging Technologies

130

(5)

Summary

135

(2)

Determining the Supplier's Role and Setting Targets

137

(20)

Introduction

137

(1)

Give Supplier (s) an Active Role on the Project Team

138

(13)

Directly Extending the Strategic Planning Process

140

(1)

Establishing Top Management Support at the Buyer and Supplier Organizations Early in the Process

141

(2)

Maintaining a Project/Finished Product Focus versus Functional Focus

143

(1)

Reaching Cross-Functional Team Consensus Regarding the Choice of Supplier(s)

144

(1)

Formally Defining Roles and Responsibilities of Buyer and Supplier

145

(2)

Creating Buyer-Supplier Team Permanency/Stability

147

(2)

Using Contractual Mechanisms to Encourage Supplier Commitment

149

(1)

Defining Ownership of New Product/Process Technology

150

(1)

Jointly Establish Clear Metrics and Targets

151

(5)

Summary

156

(1)

Information Sharing and Learning from Experience: The Daily Grind

157

(18)

Introduction

157

(1)

Share Information Openly and Extensively

157

(7)

Developing Trust to Enable Communication

159

(1)

Confidentiality Agreements

160

(1)

Reward/Risk Practices

161

(2)

Direct Cross-Functional/Intercompany Communication

163

(1)

Involve Supplier(s) in Decision Making and Problem Solving during Design Process

164

(6)

Colocation of Design Personnel

166

(2)

Linked Information Systems

168

(2)

Monitor Results and Learn from Experience

170

(3)

Performance Measures

170

(1)

Problem Resolution Practices

171

(2)

Summary

173

(2)

Barriers to Effective Supplier Integration and Future Directions

175

(24)

Introduction

175

(1)

Overview of Barriers and Solutions

175

(1)

Strategic Planning Barriers

176

(11)

Cultural Alignment

176

(4)

Trust

180

(2)

Integrated Supply Chain Processes

182

(3)

Management Commitment

185

(2)

Operational Barriers

187

(10)

Program/Project Goal Alignment

187

(2)

Honest and Effective Communication

189

(2)

Integration Problems

191

(3)

Competitive Concerns

194

(3)

Conclusion

197

(2)

Summary and Conclusion

199

(4)

Appendix A Additional Readings

203

(2)

Index

205

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New Product Development

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